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<br />3780 <br /> <br />Nath"n R. llargold. <br /> <br />-3- <br /> <br />ilay 16, 1938 <br /> <br />3. The proposed contracts involve materi~l matters upon <br /> <br />which the August conference will deliberate and ~ould <br /> <br />manife stly deny to the Upper Blsin states the opportu- <br />nity fully to consider the questions involved and <br /> <br />theroaftor to 4dvise the Secretary of the Intorior. <br /> <br />Tho additional enGrgy tho City dosiros to take, at the socondary rate <br />under its proposod contract, is in fact firm enorgy tho Metropolitan Distriot <br />would othon"nse be obligated to take undor its original contract. This being <br />truG the contracts might be so interpreted as to rosult in a suostaptial re- <br /> <br />duction in tho returns contemplated under tho Boulder Canyon Project Act. <br /> <br />The Boulder Canyon Project Act ( Section 4, Subdivision b) provide~ <br />that no funds shall become available for the censtruction of Boulder Da:" <br /> <br />wltil contracts for the sale of '"Jater and ekctricity shall have been mado <br /> <br />adequate to amortize the cost of tho project to tho Govorr~ent vnthin tho <br /> <br />period spocifiod in the Act. In contemplation of the Construction of said <br /> <br />Project, the cons~~ers of ,vater and electricity had their election as to <br /> <br />whether thoy would produce the funds required under the Aot threugh charges <br />for water storage or by charges for cloctricity. They elected to c~st tho <br /> <br />principal burden upon olectrical energy, and in accordance thorevdth ontor- <br /> <br />ed into contracts with the United States GO"lIOrllr.lent. <br /> <br />In this connection it is interesting to note that tho California con- <br />sumers protected thomselves against chanLed conditions by having the rateo <br /> <br />for falling vroter adjustable at statod periods. Under the terms of the Aol <br />